Dollar wobbles with Fed rate cuts back in view
By Rae Wee
SINGAPORE, July 17 (Reuters) -The dollar was mixed on Wednesday after a modest but short-lived boost following better-than-expected U.S. retail sales data, as traders focused on the prospect of Federal Reserve rate cuts as early as September.
The New Zealand dollar NZD=D3 rose as data showed non-tradeable inflation higher than expected in the second quarter, even as the headline figure missed expectations. The kiwi last gained 0.46% to $0.6078.
Data on Tuesday showed U.S. retail sales were unchanged in June as a drop in receipts at auto dealerships was offset by broad strength elsewhere, a display of consumer resilience that bolstered economic growth prospects for the second quarter.
While the dollar initially got a lift on the back of the data, it failed to sustain its gains as the report did little to alter market bets for a Fed cut in September, which is now fully priced in. FEDWATCH
Against the greenback, the euro EUR=EBS last bought $1.0897, hovering near a roughly four-month high hit at the start of the week.
The dollar index =USD languished near a one-month low and last stood at 104.26, while the Australian dollar AUD=D3 fell 0.05% to $0.6730.
"Ultimately, the story that I think best describes it is that the markets have chosen the story of a Goldilocks economy," said Kyle Rodda, senior financial market analyst at Capital.com.
"Yes, retail sales are solid, at least on a nominal basis, and consumer demand is strong. But the more important data is the inflation data, and that's telling the market that the Fed is in a position to cut fairly soon."
Elsewhere, sterling GBP=D3 was little changed at $1.2972, ahead of UK inflation data due later on Wednesday.
Expectations are for consumer prices to have cooled further in June, which could add to the case for an imminent easing cycle from the Bank of England.
"We expect June's UK inflation report to further cement expectations of an interest rate cut at the Bank of England's August meeting," said Henk Potts, market strategist at Barclays Private Bank.
"We project that the headline consumer price index could continue to ease hitting 1.9% (year-on-year), driven by disinflationary pressures in both core goods and services."
The yen JPY=EBS was last 0.1% lower at 158.47, as traders remained on alert for any intervention from Japanese authorities to prop up the currency after they had likely done so last week.
Bank of Japan data released on Tuesday suggested Tokyo may have spent 2.14 trillion yen ($13.5 billion) intervening on Friday last week. Combined with the estimated amount spent on Thursday, Japan is suspected to have bought nearly 6 trillion yen via intervention last week.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Rae Wee. Editing by Sam Holmes
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
